Sombor's Panonka invests EUR 1.5 million in tomato concentrate production facility - Dough processing and production of chicken pieces as of 2014

Sombor-based food manufacturer Panonka is going to invest about EUR 1.5 million in production in 2013. As eKapija learned from Predrag Lucic, general manager of Lucic Grupa, which bought Panonka in 2010, most of the funds will be invested in a factory for producing tomato concentrate.

- This factory for producing tomato puree will be one of the few factories of this kind in the region. Its daily capacity will be 120 tonnes of raw materials or 20 tonnes of final products. The plan for this year is to install all the equipment, whereas production is expected to kick off as early as next year.

As Lucic announced, existing facilities with existing infrastructure will be equipped with a new equipment made by the Italian manufacturer Manzzini. The factory will be producing about 1,000 tonnes of tomato puree annually and, as Lucic stressed, they already now have a demand abroad for their entire production.

- This product is in increasing demand worlwide, and it is interested that people in Serbia consume about 2,000 tonnes of tomato puree per year, whereas our country makes only about 300 tonnes of that product annually. And while tomato consumption in the world is growing bigger every year, the traditionally largest exporters such as Turkey and China have also become importers because consumption trend in these countries gains momentum.

With the aim of creating the best offer possible, Lucic Grupa plans to develop a network of cooperators to include at least 100 small manufacturers.

(Predrag Lucic)

- We already now have a cluster of vegetable manufacturers that we`ve formed to consolidate the offer of vegetables for foreign markets, reduce the risk and offer quantity, quality and continuity to the demanding and delicate market. Our intention is to develop a cooperation for primary tomato production with our existing collaborators in Prigrevica, Sombor and Backi Brestovac and then use that tomato to make the final product.

This Sombor-based company commissioned four processing lines for frozen vegetables and five processing lines for fresh vegetables in 2012. Panonka already exports frozen onions, carrots, potatoes, peas, celeries and parsnips to Greece, Turkey, Cyprus, Hungary, Czech Republic, Denmark, Belgium, Sweden and Russia, and it has also recently started exporting products to northern Africa, that is, Egypt.

People at Panonka believe that the storage capacity of 10,000 tonnes and a position in the north of Vojvodina secure them a great chance to position as a supplier for large systems in the European market.

- In our development plans, Panonka is seen as a factory that will, with support from our 2,000 ha property in Prigrevica as well as associations and large manufacturers, also become a production center for food products other than vegetables.

Namely, this group plans to invest additional funds in the repair of all lines and the commissioning of those already installed in Panonka, so that a factory for processing and freezing dough is in the pipeline for 2013.

(Panonka, Sombor)

According to Lucic, the factory for processing dough will be put in operation as early as next year, and this dough is intended for the Turkish market. Also, about EUR 1.5 million will be invested in the production of chicken pieces.

- Chicken pieces will be exported to northern Africa and Russia. Chicken meat is a commodity, which provides it with an advantage over other goods because production, trade and sale can be negotiated in advance. Our intention is to use our existing capacity to start another, new food business with food.

Lucic Grupa

Lucic Grupa is engaged in the production, processing and trade in vegetables and crops and in the production and processing of seeds.

The group consists of the following companiesL: Lucic Prigrevica a.d., Terravita, Panonka Sombor, and the vegetable trader Sunfoods.

With 2,000 hectares of arable land, Lucic Grupa is one of the largest individual manufacturers of vegetables and crops in Serbia.

I.B.